XRP Price Jumps 11% Above $0.53, Here Are Main Reasons Behind the Rally

The XRP price recently skyrocketed by 11%, briefly clinching the $0.53 level, amid a third victory for Ripple in the SEC case and fresh money pumped into the market.

XRP’s good fortunes began yesterday amid a market-wide recovery. The comeback became more apparent after 19:00 (UTC) yesterday upon a fresh disclosure stating that Ripple’s executives have secured another win against the U.S. SEC in the ongoing litigation.

XRP printed an impressive 2.88% hourly green candle and recorded three more green candles on the hourly timeframe. The asset’s growing upsurge hit a peak of $0.5313 at midnight today. This price top represented an 11.3% jump from yesterday’s $0.4772 low.

XRP Price Above Crucial EMAs

Despite resistance from the bears, XRP has held firm above $0.51, looking to establish a strong position above $0.52 and $0.53. The recent rally helped XRP tower over the 21-day EMA at $0.5039. 

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A surge above the 21-day EMA usually signifies a short-term bullish momentum. Market watchers interpret it as a sign that the recent price trend is positive, anticipating further price increases.

This bullish momentum is further shown in XRP’s position to the 50-day ($0.5146) and 200-day EMAs ($0.5170). XRP had traded below these two vital EMAs since dropping below $0.52 on Oct. 8. However, the recent modest rally saw it surge above them, albeit not by a large margin.

The asset’s trade volume has spiked 112% over the past 24 hours, rising to $1.61 billion. This elevated trade volume demonstrates the growing interest in XRP as market participants look to ride on the recent upsurge. The last time XRP saw a volume above $1.6 billion was on Sept. 29.

Reasons Behind the Rally

One of the primary catalysts behind this rally was a third victory secured by Ripple against the SEC. As first revealed by defense attorney James Filan, the SEC recently informed Judge Torres that it is dismissing its claims against Ripple’s executives, Christian Larsen and Bradley Garlinghouse. 

#XRPCommunity #SECGov v. #Ripple #XRP BREAKING: CASE DISMISSED AGAINST BRAD GARLINGHOUSE AND CHRIS LARSEN pic.twitter.com/BYTe9152jM

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) October 19, 2023

This dismissal means the scheduled trial for these claims is no longer necessary. Moreover, recall that in her July 13 judgment, Judge Torres ruled that Ripple’s past sales of XRP to institutions violated securities law provisions.

In the recent letter to Judge Torres, the SEC noted that the agency and Ripple plan to discuss the next steps and potential remedies for this violation by Ripple, with a proposal expected by Nov. 9, 2023. Filan disclosed this at 20:42 yesterday (UTC), compounding XRP’s rally.

Another driving force behind the recent upsurge is an accumulation spree by wallets holding between 10,000 and 10 million XRP. Data from Santiment suggests that these addresses have increased their holdings to 29.5% of XRP’s supply, the highest cumulative balance since July 27.

Santiment also disclosed that XRP had hit a social dominance of 2.56%, marking its second-highest rate in over a month. This increase in social mentions is due to the third lawsuit victory and the surge in the XRP price. XRP is trading for $0.5188, up 7.36% over the past day.